Cairn India Limited Corporate Brouchure

Cairn India Limited

Delivering Growth through Transformation

Cairn India’s journey 03

Our Journey since IPO: Consistent delivery of growth 05

Our Heritage 05

Our Vision and Core Values 07

Discovering Energy for Growing Economies 08

Growing assets in the region 13

Developing the Rajasthan Discoveries 15

Rajasthan Upstream 18

Exploring to Discover 24

People Our Assets 27 Highest Priority Safe Operations 28

Competitive Advantage 31

Producing Hydrocarbons Responsibly 32

Content

As in the past, it is expected that the demand for energy will

continue to outpace supply in future. This makes it critical for

all growing economies to secure energy supplies to meet the

growing needs of the people.

We, at Cairn India, believe that successful growth can only

be based on the principles of sustainability, affordability,

inclusiveness and sensitivity to our environment.

Cairn India is listed on the Bombay and National Stock

Exchanges and has a market capitalisation of more than USD

14 billion. We are among the fastest growing Exploration and

Production companies in the world with a strong heritage of

exploration success and a proven track record of fast track

development and low cost operations.

Our foundation is built on a relentless focus on execution, cost

consciousness and innovative application of technology. We

believe in working towards common objectives with a strong

ethos of teamwork.

Stakeholder and community relationships are an integral part

of our business. Cairn India’s approach to dealing with these

is encapsulated in the 3R’s – Respect, Relationships and

Responsibility. Working closely with our stakeholders and

communities in our areas of operation, Cairn India has helped

in making a difference to their lives.

Cairn has in the last 15 years of its presence in India made

more than 40 discoveries, including Mangala, the biggest

onshore oil discovery in India in the last two decades. By the

end of 2011, Cairn India will be contributing more than 20% of

India’s domestic crude production.

This brochure is a statement of our business philosophy and

outlines the key drivers of our performance as a company

pioneering in the quest for energy and enriching lives.

Rahul Dhir

Managing Director & CEO

The pursuit to harness energy, which plays an instrumental role in economic growth, continues unabated.

ForewordRahul DhirManaging Director & CEO

Three out of the seven landmark oil discoveries made in India between 2000 and 2005 were by Cairn and its Joint Venture partners

02

Cairn has been exploring for hydrocarbons

in India for more than 15 years. Today,

it has a proven track record of making

exploration discoveries and fast tracking

them to production. Three out of the seven

landmark oil discoveries made in India

between 2000 and 2005 were by Cairn and

its Joint Venture (JV) partners.

The Mangala discovery in Rajasthan in

2004 was the largest onshore discovery in

the country in the past two decades.

The company operates the largest

producing oil field in the Indian private

sector and has pioneered the use of

cutting-edge technology to extend

production. We have a world class

resource base and are focused on the

delivery of the Rajasthan development as

we continue successful production from

our existing assets.

Cairn India’s Journey

Delivering Growth through Transformation 03

The story began in 1979, when Sir Bill

Gammell, our chairman, founded Cairn

Energy. In 1988, the company was listed

on the London Stock Exchange. Sir Bill

Gammell became its first Chief Executive

and has held this position for more than

two decades, overseeing the organisation’s

transformation to one of the largest

independent exploration and production

companies in Europe. As the Indian oil

and gas market deregulated in the early

1990s, Cairn’s focus turned to this region,

acquiring Command Petroleum Ltd in

1996, an Australian-quoted company with

interests in South Asia.

Cairn Energy PLC, a FTSE 100 company, was

one of the first UK companies to invest in the

Indian oil and gas sector. Ravva in eastern

India was the first offshore oil and gas field to

be developed, followed by the Lakshmi gas

field in western India, which was discovered

in 2000 and commenced production in 2002.

In January 2004, Cairn added the Mangala

oil field in Rajasthan to its assets and

this, along with the other discoveries in

Rajasthan, will form the core of the future

developments in India.

Today, South Asia is one of the most

exciting investment destinations for the

hydrocarbon sector. Cairn India, along

with its joint venture partners, has invested

billions of dollars in a variety of projects

and developments in this region.

Our Heritage

On 9 January 2007, Cairn India Limited was

listed on the Bombay Stock Exchange and

the National Stock Exchange of India. Cairn

Energy PLC, the parent company holds

a 62.25%* interest while Petronas has a

14.9%* interest in Cairn India Limited. This

provided Cairn India with a new platform

for its next stage of growth by:

Capitalising on the strong development

and operational expertise

• Sustained production from and

maintaining low operating costs in

existing producing fields

• Optimising recovery from the Ravva

and Cambay fields through

deployment of state of the art

technology

• Developing the world class Mangala

field in Rajasthan, the largest

onshore hydrocarbon discovery in

India since 1985

Ensuring the company is well

positioned to take advantage of growth

opportunities in the region

• New acreage in Sri Lanka

• Complete portfolio evaluation

• Planning new exploration activities

and programmes

Consistent Delivery of Growth

Our Journey Since IPO

* As at March 2011


Cairn India’s vision of pioneering

energy and enriching lives is built on the

foundation of our core values of pioneering

spirit, teamwork, respect and ownership.

These are embodied in the way we

conduct our business and engage with

our stakeholders.

Over the years, innovative thinking and a

can do attitude within teams helped Cairn

to grow collectively in this part of the

world. Respect for individuals within the

organisation, a healthy diversity of cultures

and professional experience has helped

Cairn to pursue its vision of being a pioneer

in the field of energy. Cairn has also

successfully demonstrated its commitment

towards the communities in which it

operates through responsible actions

that has helped in creating sustainable

livelihoods whilst aiming to safeguard the

environment.

For more than a decade Cairn has been

undertaking pioneering activities in the

field of energy. Through the core values

of pioneering spirit, teamwork, respect

and ownership we have built a significant

hydrocarbon resource base in the country.

Our Vision and Core Values


Discovering energy for growing economies A decade of achievement

Exploration

• More than 40 Hydrocarbon discoveries:

Onshore

Offshore

- Shallow

- Deep

Development

• Fast-track development

• Lakshmi gas field discovery in May 2000 and first gas

by October 2002

• Ravva, developed from a 3,700 barrels of oil per day

(bopd) field to a 35,000 bopd field in 26 months, then

plateau production of 50,000 bopd for nine years

• Mangala Field Development Plan (FDP)

approved within 30 months of discovery

Production

• Operates the largest producing oil field in

the Indian Private Sector

• Combined field direct Opex of Ravva and CB/OS-2 is

approximately USD 2/barrel of oil equivalent (boe)

• Pioneered use of cutting-edge technologies to extend

production life

Sales

• Gas sales contract with public and private buyers

• Oil sales to four major refineries across India

08

Cairn is focused on creating value for our stakeholders through

exploration and production. We continue to maximise the potential of Rajasthan and recovery from the

existing producing assets while identifying new growth opportunities


PrODuCIng ASSetS

ravva Field, Krishna-godavari Basin,

Andhra Pradesh

The Ravva oil and gas field in the Krishna-

Godavari Basin was developed in

partnership with ONGC, Videocon and

Ravva Oil, under a production sharing

contract (PSC) that runs until 2019.

Currently, eight unmanned offshore

platforms are being operated. A 225-

acre onshore processing facility at

Surasaniyanam processes natural gas

and crude oil from the Ravva field. The

Ravva onshore terminal operates to the

internationally recognised environmental

standard – ISO 14001 – and has the

capacity to handle 70,000 barrels of oil

per day (bopd), 95 million standard cubic

feet per day (mmscfd) of natural gas and

110,000 barrels per day of injection water.

The terminal also has the capacity to store

one million barrels of crude oil onshore.

The Ravva field is one of the most efficient

fields in the world and has maintained its

low-cost operating base by focusing on

oil field life-cycle planning, continuous

monitoring of operational costs and

the innovative application of operating

technologies. Ravva completed 15 years

of continuous operations on 28 October

2009. Originally estimated to produce 101

million barrels of crude oil, Ravva has now

produced more than 225 million barrels.

Cairn India is confident of the field’s

considerable remaining reserve potential

and of further oil production from

this block. The Company and its JV

partners have completed a 4D seismic

acquisition campaign, first in India, to

identify bypassed oil zones and have now

commenced infill drilling.

CB/OS-2, Cambay Basin, gujarat

In 2002, gas production commenced from

the Lakshmi gas field, which is situated in

Block CB/OS-2 in the Cambay Basin of the

west coast of India in the Gulf of Khambat.

The Gauri offshore gas field was discovered

in 2001 and came on-stream in 2004.

CB-X, a marginal gas field in the transition

zone of the CB/OS-2 block was in

production between June 2007 and

August 2009. The Lakshmi and Gauri fields

commenced production of oil in addition to

its gas production in 2005.

Cairn is the operator of the CB/OS-2 block.

The PSC was signed in 1998 with ONGC

and Tata Petrodyne Limited as partners and

runs until 2023.

The natural gas and crude oil from these

fields is processed at an 82-acre onshore

processing facility at Suvali owned by the

JV partners. The plant is certified to ISO

14001 & OSHAS 18001 standards and has

the capacity to process 150 mmscfd of

natural gas and 10,000 bopd of crude oil.

The application of advanced geophysical

tools has helped map thin oil sands which

are beyond normal seismic resolution

capability. These techniques have

transformed the CB/OS-2 block from a

predominantly gas field to an oil

growing our assets

Cairn India is committed to continuing investment for growth and is focused on creating shareholder value by developing its world class resource base in Rajasthan, maximising recovery from the existing resource base and seeking to continue Cairn’s track record of exploration success

10

field through the discovery of an oil leg.

Tubing sand screens were used for the

first time in the Cambay Basin as a sand

control measure. The Cambay asset has

witnessed the use of several cutting-

edge technologies which have increased

throughput at a lower unit cost.

Cairn India signed a Term Sheet agreement

to produce Gauri share of GBA (Gas

Balancing Agreement – for sharing of gas

from the shared reservoir formation) gas

through the Hazira facilities in December

2009. The gas production and sales also

commenced in the same month. This is a

first arrangement of its kind in the country.

DeVelOPment PrOJeCt

rajasthan – Barmer Basin

Cairn has developed a good understanding

of this reservoir through extensive seismic

and appraisal work.

The Mangala field, which was discovered

in January 2004, is the largest onshore oil

discovery in India in more than 20 years.

The Mangala, Bhagyam and Aishwariya

(MBA) fields have recoverable oil reserves

and resources of nearly 1 billion barrels,

which includes proven plus probable (2P)

gross reserves and resources of 694 million

barrels of oil equivalent (mmboe) with a

further 300 mmboe or more of Enhanced

Oil Recovery (EOR) potential. The MBA

fields will contribute more than 20% of

domestic crude production when they

reach the currently approved plateau rate

of 175,000 bopd.

The Mangala Field commenced production

on 29 August 2009 after it was dedicated

to the nation by the Honourable Prime

Minister of India, Dr. Manmohan Singh at

the Mangala Processing Terminal in Barmer,

Rajasthan. Cairn India has embarked on the

journey of transformational growth in oil

production levels with its Rajasthan fields

commencing production.


It has been recognised that the significant reserves and resources discovered in Rajasthan are ideal candidates for the application of advanced techniques to optimise and increase recoverable volumes. Utilisation and development of these technologies is key element to realise the full potential of the block

12

Cairn first came to Rajasthan in 1997 with

the belief that the key ingredients for

commercial success were present, but

it took perseverance and more than a

dozen wells to discover the Mangala field,

followed by Aishwariya, Bhagyam and

other discoveries. To date, 25 discoveries

have been made in the Rajasthan block.

The Mangala, Bhagyam and Aishwariya

(MBA) fields in the northern area of the

Block are currently under development

with over 125 development wells already

drilled in Mangala. The Mangala field

was dedicated to the nation on 29 August

2009. Since then, Mangala production

has ramped up to the currently approved

plateau rate of 125,000 bopd.

The focused effort on drilling high capacity

horizontal wells in Mangala and the

reservoir performance supports higher

plateau levels. Surface and sub-surface

facilities are ready to support production of

150,000 bopd from Mangala, subject to JV

and Government of India (GoI) approval.

In addition to Mangala, as per the currently

approved FDPs Bhagyam and Aishwariya

have the potential to produce 40,000 bopd

and 10,000 bopd respectively.

Work on the development of the Bhagyam

field, the second largest field in Rajasthan,

has commenced. Development drilling

has started with a total of 19 Bhagyam

development wells drilled to date. Crude

oil production from the Bhagyam field is

expected to commence in H2 CY 2011 and

achieve approved plateau levels by year

end 2011. The sub-surface well results so

far have been as per expectations.

Assessment of production impact

and design optimisation is currently

underway due to increased reserves in the

Aishwariya field. Production is scheduled

to commence in H2 CY 2012 subject to JV

and GoI approval.

Thus, the MBA fields together have

the potential to generate peak plateau

production of more than 175,000 bopd.

Enhanced Oil Recovery

As a demonstration of our commitment for

early use of advanced recovery techniques

to increase the oil recovery from the world

class MBA fields in Rajasthan, the chemical

EOR pilot trials in the Mangala field started

in early 2010. The first phase of EOR pilot

consisting of four injectors, one producer

and three observation wells, has been

drilled, completed and hooked up to the

facilities. Water injection and production

phase also commenced in December,

2010. This pilot will be used to refine the

EOR process and facilities with an aim to

roll out EOR on a field wide basis. The

current assessment of the EOR resource

base is more than 300 million barrels

(mmbbls) of incremental recoverable oil

from the MBA fields alone.

Barmer Hill

A pilot hydraulic fracturing programme

to test the potential of the Barmer Hill

Formation is in the final stages of planning

and its implementation is subject to

GoI approval. The pilot programme will

allow evaluation of the appropriate cost

effective technology for a fully optimised

development of this resource base. A

declaration of commerciality for the Barmer

Hill was submitted to the GoI in March,

2010 and a FDP is under preparation.

Optimal recovery techniques utilising large

fracture treatments and potential use of

multiple staged horizontal well fracs, will

be demonstrated and refined during this

and subsequent pilots.

Developing the rajasthan Discoveries


The Rajasthan Field Development Area

(FDA) consists of three contiguous areas:

(i) Development Area 1 - Mangala,

Aishwariya, Raageshwari and

Saraswati (MARS)

(ii) Development Area 2 - Bhagyam

(iii) Development Area 3 - Kameshwari

West.

Cairn India and its JV partner ONGC have

an area of 3,111 km2, under long term

contract on the Rajasthan licence spread

across the districts of Barmer and Jalore.

At peak production, the Mangala,

Bhagyam and Aishwariya fields together

will produce 175,000 barrels of oil per day

(bopd) - which is estimated to account

for more than 20% of India’s crude oil

production. Subject to GoI approval and

additional investments, the Rajasthan

resource base now provides a basis for

a vision to produce 240,000 bopd or

37% more than the currently approved

peak production, which could ultimately

translate to about 35% of India’s domestic

crude oil production.

mangala Processing terminal (mPt)

Spread over an area of 1.6 km2, the MPT

is designed to process crude from the

Mangala, Bhagyam and Aishwariya fields

and has a nameplate capacity to process

205,000 bopd of crude with scope for

further expansion. Trains One, Two

and Three are commissioned and the

construction of Train Four is underway.

Processing crude oil from four trains

requires the MPT to have an extensive

water heating, circulating and recycling

system, gas recovery systems, heat and

power systems and built-in fire and safety

systems. The infrastructure to and from

the MPT involves some 500 kms of intra-

and inter-field pipelines and 80 kms of

inter- field roads.

Steam is the main source of heat to extract

and evacuate the Rajasthan crude. The

advantage of steam is that it is an efficient,

pollution-free and a renewable resource.

All power requirements of the MPT are

met by captive power plants, comprising

four 12 MW Steam Turbine Generators

and three 2 MW Emergency Diesel

Generators.

The water to generate steam and flood

the oil reservoirs to help evacuate the

crude comes from a saline water aquifer

at Thumbli, which is 22 kms away from

MPT. Due care was taken during the

design of MPT to preserve water, a scarce

resource in the desert state of Rajasthan,

by recycling and reusing water for boiler

feed, injection purposes and when used as

power fluid.

The gas from the Raageshwari field,

located 90 kms away from MPT, is used

to heat the boilers and, more importantly,

to heat the waxy crude along the

approximately 670 kms Barmer to Bhogat

pipeline.

Developing the Barmer to

Bhogat Pipeline

Cairn India took on the crude pipeline

project to overcome the following

challenges:

• To reach maximum potential buyers

• Resolve the flow assurance issues

posed by the quality of the crude oil

• Minimum effect on the environment

and minimum foot print

• Build a technically sound and

operations friendly evacuation

system

The Mangala Development Pipeline

Project (MDPP) starts at the MPT in

Barmer and passes through the two states

of Rajasthan and Gujarat, eight districts

rajasthan upstream


and travels approximately 670 kms before it

reaches the coastal location of Bhogat near

Jamnagar on the western coast of India.

The MDPP Evacuation system is a 24”

crude oil pipeline which uses a Skin Effect

Heat Management System (SEHMS) to

ensure that the crude oil remains above

the Wax Appearance Temperature (WAT)

of 65oC, throughout the pipeline. It has

an 8” gas line which feeds gas to all the

Above Ground Installations (AGI) located

at approximately 20 kms distance on the

pipeline. The AGIs produce the necessary

power to keep the pipeline heated to the

required temperature. The pipeline has

36 AGIs and an intermediate pumping

station and terminal at Viramgam. The

pipeline also extends up to Radhanpur,

where a terminal has been constructed to

facilitate the crude oil sales to Indian Oil

Corporation Limited through their

pipeline network.

The pipeline crosses all major crude oil

carrier pipelines in the western part of

India and offers the potential of blending

the Rajasthan crude with the other crudes

that are carried in the other pipelines. As

it terminates at the coastal location, the

marine facilities are designed to load the

crude oil carriers to transport the crude oil

to other coastal refineries as well. This way

the pipeline accesses 75% of India’s

refining capacity.

The pipeline project has a few first to its name:

• It is the world’s longest continuously

heated and insulated pipeline using

SEHMS technology

• For the first time in India an insulation

plant has been set up especially

for this project by the line pipe

manufacturer

• Engagement with more than 40,000

land owners and land users while

obtaining required Right of User

(ROU) under the Petroleum and

Mineral Pipelines Act , 1962

• More than 750 crossings of various

types starting from Railways, National

and State highways, Rivers, Canals,

other roads and other pipelines etc

The MPT to Salaya section (approx. 590

kms) is now operational along with the final

delivery infrastructure to each buyer. The

pipeline system has demonstrated safe

and efficient operations and is transporting

125,000 bopd to various refiners.

Construction work on the Salaya to Bhogat

section (approx. 80 kms) pipeline including

the Bhogat terminal and marine facility is in

progress with completion targeted in

H2 2012.

Developing the world’s longest continuously heated and insulated

pipeline demonstrates the technical expertise being applied to secure energy from the Rajasthan fields


At present, out of the 10 blocks where

Cairn India has exploration and appraisal

interests, nine blocks are in India and one

in Sri Lanka. These blocks are located in

the Krishna-Godavari Basin, Palar-Pennar

Basin, Kerala Konkan Basin, Cambay

Basin, Barmer Basin and the Mannar Basin

offshore Sri Lanka.

The prospect and lead portfolio being

developed and matured by Cairn India is

diversified and comprises a balanced mix

of risk and potential reward.

nOrtHern InDIA

rajasthan

Barmer Basin - rJ-On-90/1

(Cairn India 70%, Operator)

There remains a significant and as yet

untested prospective resource potential to

pursue in the Barmer Basin of the

Rajasthan block.

Over the last two years, a full re-evaluation

of the Barmer Basin has been undertaken.

All 170 exploration and appraisal wells

were re-examined, new studies were

started and 2,733 km2 of 3D seismic data

was re-processed and re-interpreted. Cairn

India has also acquired over 2.2 km of

cores to help gain a better understanding

of the geographical and reservoir

models. As a result of these studies, the

Rajasthan prospect portfolio has increased

substantially to 250 mmboe recoverable

risked mean prospective resources with

an upside potential, equivalent to a most

likely in place resource of 2,500 mmboe.

Discovering and developing these resources

will be an important step in realising the full

production potential of Rajasthan.

Technical evaluation work continues to

assess existing and new plays in the basin

to generate further prospects in Rajasthan.

SOutHeASt InDIA

Krishna godavari Basin

The Company holds a strong position

in the Krishna Godavari basin with both

existing production from the Ravva Field

and prospective acreage in onshore and

offshore blocks. Our commitment to this

basin was further consolidated with the

award of the sought after KG-OSN-2009/3

block in the NELP VIII for which a

Production Sharing Contract was signed on

30 June 2010.

ravva (Cairn India 22.5%, Operator)

A major review of the block-wide

additional potential is being undertaken.

A review of Contingent Resources was

completed in early 2009, resulting in small

but significant additions to the resource

base, although further drilling is required

to monetise these. A second study to

assess the additional undiscovered

exploring to Discover

18

Cairn India is in an exciting period of growth and is pursuing a range of

exploration and appraisal programmes in its key Rajasthan acreage and other

exploration blocks throughout India and in Sri Lanka. Cairn India pursues a strategy

of accessing and applying appropriate leading-edge technologies to ensure it builds competitive advantage in all

exploration projects


Cairn India holds exploration licences for various geographic areas in eastern, western, northern India and Sri Lanka. These interests provide us opportunities to develop our business in the long term

potential within the field both in untested

deeper horizons and in adjacent structures

is ongoing and is expected to add new

exploration prospects. Further evaluation

of the commerciality of these prospects is

underway prior to drilling.

Kg-Onn-2003/1 (Cairn India 49%,

Operator)

Two wells Nagayalanka-1z and Krishna-1

were drilled during Q2 FY 2010-11. Oil

flow at the rate of 75 bopd and gas at the

rate of 0.27 mmscfd were established in

the Nagayalanka-1z well and a discovery

declared. Preparations are ongoing for

further exploration and appraisal drilling.

Kg-DWn-98/2 (Cairn India 10%, non-

Operator. OngC is the operator)

The northern area of this PSC is now in an

appraisal phase following completion of the

exploration period. The first of three wells

to appraise existing discoveries in the block

was spudded in Q4 2009. Two further

wells will be drilled by the end of Q2 2010,

as part of the future plan for commercial

development of this discovered oil and

gas resource. The southern area appraisal

period was completed in December 2009

with the declaration of commerciality

submitted to the Directorate General of

Hydrocarbons (DGH).

PAlAr-PennAr BASIn

Pr-OSn-2004/1 (Cairn India 35%,

Operator)

Following interpretation of 3,100 line km

of offshore 2D seismic data, 800 km2 of 3D

seismic data a geotechnical study and pore

pressure studies have been completed.

The block is currently under Force

Majeure.

KerAlA-KOnKAn BASIn

KK-DWn-2004/1 (Cairn India 40%,

OngC is the operator)

A 3,840 line km 2D seismic programme

was completed in 2009 and following

interpretation of the data, 300 km2 of 3D

acquisition was completed.

mOVIng BeyOnD: SrI lAnKA

Sl 2007-01-001 (Cairn lanka

100% - a wholly owned subsidiary

of Cairn India)

Cairn Lanka Private Limited, the wholly

owned subsidiary of Cairn India,

commenced its 3D seismic survey in the

Mannar Basin in Sri Lanka on 10 December

2009 and the data is currently being

processed. The acquisition programme,

which was launched by the Honourable

President of Sri Lanka, Mahinda Rajapaksa,

fulfilled the commitment of 1450 km2 of 3D

seismic data acquisition. Exploration drilling

is planned to commence in July 2011.

Logistical preparations and detailed studies

are currently ongoing ahead of the drilling

schedule.

The Mannar basin is an unexplored frontier

petroleum province with both structural

and stratigraphic plays.

20

Delivering Growth through Transformations21

Portfolio of Assets in India and Sri Lanka

Rajasthan Block Map

For more than a decade, Cairn has been

successfully discovering and bringing to

production new oilfields to increase its

hydrocarbon resource base through the

use of latest technologies.

Cairn has established new benchmarks

with its ability to manage reservoirs and

maximise recovery to increase the reserve

bases of the fields it operates.

By introducing clean technologies,

streamlining maintenance and improving

recovery rates through innovative

applications that are cost effective, Cairn

India has successfully maximised the oil and

gas output from mature and new fields.

Cairn India pioneered India’s first

deepwater discovery on the east coast. Of

the 14 wells drilled by the joint venture in

Krishna-Godavari deepwater since 2001,

there have been 10 discoveries. Some

of the important ones are Annapurna,

Padmavati and Kanakdurga, in depths

ranging from 400 m to 2800 m.

Ravva: At the Ravva field, Cairn and

its JV partners have built a success story

by putting new technologies into action

through sub-surface work, cost effective

operations and the implementation of

best reservoir management practices.

Three development drilling campaigns

were carried out in the last decade to drill

32 development wells and the field has

produced at plateau rates of approximately

50,000 bopd for the last nine years. Cairn

has completed the ambitious programme

of 4D seismic to access the remaining

hydrocarbons and infill drilling is to

commence to identify bypassed oil zones.

The innovations at Ravva have set

a benchmark for future fields and

exploration activities. The concept of

under balance perforation using TCP guns

was implemented for the first time in India

during the first drilling campaign in Ravva

in the year 1996-98. This resulted in high

deliverability wells thereby minimising the

capital expenditure in the field.

At Ravva, new technology such as coiled

tubing catenary was implemented on

location for the first time in South East

Asia as well as the Middle East. A Drag

Reducing Agent (DRA) was also applied

in the multiphase pipeline that resulted in

enhancing and sustaining the plateau rate.

Cairn also introduced Produced Water

Re-Injection (PWRI) in an offshore field.

As part of its continued commitment to

green technology, Cairn India has installed

a solar plant for the remote management

of the well heads located offshore Ravva.

Pioneering technology

Using innovative technologies is a way of life with us. We are ready to face the energy challenges of the future, our focus on technology helps us to stay ahead in an environmentally responsible manner. Cairn India has applied technology and gained significant operational experience in the deserts of Rajasthan, the highly populated plains of Bihar, the shallow waters of Cambay and the deepwaters of the Krishna Godavari and Kerala Konkan basins

24

In addition, a 400 watts wind generator

has also been installed to lower diesel

consumption on cloudy days. These

innovations have helped the ISO 14001

accredited Ravva field to emerge as one of

the top shallow water oil developments.

Cambay: In the western coast of

Gujarat, Cairn has been using advanced

geophysical tools like spectral

decomposition and Time Frequency

Continuous Wavelet Transformation

to map the complexity of the thin play

reservoir, which is beyond seismic

resolution. This technique has helped

transform CB/OS-2 to develop from a

predominately gas producing block to an

oil producing block.

Expandable Sand Screen (ESS) on

the sea bed was installed for the first

time in the world, in the Gauri fields.

CB/OS-2 block has also witnessed

cutting-edge technologies in the other well

services like:

• The plastic plug technique was

successfully used for zone isolation in

one of the Gauri wells for the first time

in India, which proved to be a cheaper

option than other methods for the

same purpose.

• Successful well interventions in highly

deviated wells with more than 88o

deviations at 1800 m depths with the

help of Slickline catapults and tractors.

• For the first time in India, through

tubing and sand screens were

successfully installed in one of the

wells in Lakshmi, thus enhancing its

production.

rajasthan: Cairn India and its JV

partner ONGC, continue to develop the

hydrocarbon resources within the state

of Rajasthan with a sustained focus on

cost and the application of innovative

technology. The use of high density

3D seismic surveys has enhanced the

understanding of the reservoir and helped

in precise identification of well locations

leading to reduced finding costs.

The use of pad-based drilling coupled with

mobile drilling rigs has allowed a large

number of wells to be drilled in a short

time frame with a reduced environmental

footprint and lower infrastructure and

drilling costs.

The focused effort on drilling of high

capacity horizontal wells in Mangala and

the reservoir performance from the field

supports higher plateau levels.


At Cairn India, we believe that world class

results can be delivered only by world class

people, facilitated by a world class working

environment.

The company unlocks the potential of its

employees by creating a high performance

culture.

The HR policies and practices provide an

enabling work environment that motivates

every employee to rise to the challenge of

delivering extraordinary results.

Cairn India has developed a strong pool

of skilled manpower over the years of its

operations in India. The people that Cairn

employs represent the foundation of this

multicultural organisation. Over the years,

Cairn has employed some of the brightest

minds in the industry and the skills of

these people are critical to the success of a

dynamic organisation.

Our people development initiatives are

aimed at building leaders who will take

the organisation forward in line with its

vision and values. Cairn encourages a team

spirit that fosters a focused and motivated

working environment, creating a climate

where employees have an opportunity to

maximise their potential.

Cairn India is an equal opportunity

employer, where practices and policies

enable employees to build a strong and

sustainable career path.

Cairn is committed to fostering an

entrepreneurial environment for its

employees. Over time it has built a depth

of knowledge and strong sets of cultural

values. Around 80% of our employees are

professionally qualified and are led by an

experienced management team. Their

passions for the business, ability to adapt to

new technology and commercial acumen

have played a vital role in the success of

our organisation.

People Our AssetsIts our people...with unlimited capabilities


Health, Safety and Environment are

integral to Cairn India’s business

management systems. The company is

committed to accomplishing excellence in

HSE across all its operations, and to protect

our employees and contractors who come

into contact with the physical and natural

environments in which they work. Cairn

strives to minimise any impacts to the

environment arising out of its activities.

Cairn India has adopted several

international standards, processes and

procedures in its management system,

some of which are:

• UK Safety Case approach, which has

been applied to the CB/OS-2

development

• UK Control of Major Accident

Hazards (COMAH) Regulations,

which are being applied to the

Rajasthan Development. All operating

sites are ISO 14001 certified

• The Rajasthan project successfully

completed forty million man hours

without a lost time injury (LTI)

• CB/OS-2 and Ravva sites Safety

Management Systems are OHSAS

18001 certified

• International HSE standards are

being applied in the construction of

the Rajasthan upstream project works

and in the Rajasthan-Gujarat

pipeline project

• The DuPont ‘STOP’ system has

been introduced throughout Cairn

India operations as a tool to improve

behavioural safety

• Cairn India has in place safety policies

for road transportation, aviation and

marine operations

Highest Priority: Safe Operations

As an organisation that focuses on sustainable growth, Cairn India is fully aware of its responsibilities during hydrocarbon exploration and production. It is for this reason that Health, Safety and Environmental (HSE) policies receive our highest priority

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Staff participation is critical for HSE to function effectively. To ensure this, there

is a HSE Leadership Team in place. It comprises Cairn India’s senior management,

which provides leadership on HSE matters, reviews performance and identifies

opportunities for improvements

29Delivering Growth through Transformation

With a five fold increase in production volumes forecast for the next decade, the development work is in full swing

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low cost operating capability: Cairn

India has over the years demonstrated

that it is capable of operating its assets

on a very cost effective basis. The direct

operating cost of its Ravva block is in the

range of USD 2 per barrel, amongst one

of the lowest in the world. This allows

production to be profitable even at USD 9 -

12 per barrel crude prices.

Project execution: Cairn India has

demonstrated world-class and skilled

project execution with the development

of Rajasthan upstream facilities and

construction of the world’s longest

insulated and heated pipeline. Cairn is

commissioning India’s only heated Single

Buoy Mooring (SBM) facility at Gujarat

Coast for handling Rajasthan crude oil

and contributing more than 20% to India’s

domestic production. As the operator of

the Lakshmi field in the Cambay Basin,

Cairn commenced natural gas production

in less than 30 months following discovery.

The Rajasthan discovery to first oil was

done in five years; another enviable

achievement.

nurturing resources: Cairn India has a

proven track record of prudent reservoir

management and achieving recovery

of crude over an extended plateau. In

the Ravva field in the KG Basin, Cairn

increased crude oil production from a level

of 3,700 bopd in 1994 to 35,000 bopd in

26 months and ultimately to the plateau of

50,000 bopd in 1999. In 2009, the Ravva

block completed 15 years of production

and is still going strong.

Success through technology: Cairn

India has been a leader in the application

of latest technologies to enhance the

resource base and in finding solutions for

overcoming different technical issues.

• Executing the world’s longest

insulated and continuously heated

crude oil pipeline from Barmer in

Rajasthan to Bhogat on the coast

of Gujarat.

• Horizontal well drilling to produce

from sheet sands - oil flow rate

>11,500 bopd achieved from the first

horizontal producer well – a record in

the country

• Application of Enhanced Oil Recovery

technology in Rajasthan, pioneered

in using the technique in the

initial phases of field life

• 4D seismic surveys in Ravva to tap

further potential of the field

nurturing Skills: Over the years, Cairn

India has grown significantly to become

a more than USD 14 billion company. In

the process, it has strengthened its core

capability with a blend of experienced

and young professionals from various

backgrounds. The employees have

a passion for the business and in a

fast-moving environment they adapt

to changes, using their technical and

commercial acumen, managing risk and

uncertainty and making ‘brave’ decisions

in the pursuit of our vision. High corporate

governance standards, coupled with

professional management, distinguish

Cairn India from its peers.

Partnership: Working with local

communities, Central Government, State

Governments and JV partners, Cairn India

has developed an in-depth understanding

of the regulatory environment and has laid

the foundations for strong relationships.

We strive to create value for our

shareholders through strong corporate

governance and business ethics.

Competitive Advantage


Our Vision, values and missionCairn India is committed to the

highest standards of Corporate Social

Responsibility (CSR). We are committed

to creating value through leadership in

corporate social responsibility. It is our

conviction that continuous business

growth, sustainable communities and the

creation of value for our stakeholders go

hand-in-hand.

Cairn India has made good progress in both

developing and implementing its approach

to managing the CSR challenges facing

the business. Specific attention has been

placed on the emerging CSR issues such

as assessing and managing biodiversity

risks, security, human rights and the

potential impact of climate change on doing

business. We have found that the use of a

‘rights aware’ approach has helped us to

address some of the more complex issues

that the Company faces and we are working

to raise awareness about this approach.

Cairn India proactively engages with

communities and stakeholders to arrive

at a collective vision and joint

implementation plan.

Our goal is to make a positive social impact

in every area in which we operate. Our

vision encapsulates Corporate Social

Responsibility in the 3 R’s.

Producing Hydrocarbons Responsibly

People are Cairn India’s key asset and the

attitude of the Cairn team is critical to its

business culture. Cairn’s entrepreneurial

spirit is underpinned by a depth of

knowledge and a strong set of cultural

core values, including integrity, social and

environmental responsibility, teamwork,

nurturing of individual creativity, risk

management and developing alliances with

key partners.

Relationships are the key to developing

any business and Cairn India’s success

in the region for more than a decade

would not have been possible without

the consistent support of all stakeholders,

from Governments, regulators and JV

partners to the people living near our sites.

The level of support and understanding

on the ground is something we have

worked hard to bring about in our business

development activities and we are proud

of what we have achieved – and continue

to achieve – wherever we are operational.

reSPeCt

relAtIOnSHIPS

reSPOnSIBIlIty

Corporate Social responsibility: making a difference through social innovation

Cairn India is operating in many areas that

face economic, social and environmental

challenges. It has the responsibility to

understand these CSR challenges, identify

the potential impact of its activities and,

through engaging with stakeholders, look

for opportunities for mutual benefit.

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• Positive engagement with stakeholders for enabling ease of business activities -

a social license to operate – and risk mitigation and reputation management

• Addressing expectations of key stakeholders through socio-economic

development

• Overall development of communities and improvement of social infrastructure

• Following compliance and standards

• Creating wider ownership, participation and spokespersons for CSR

• Reputation enhancement with internal stakeholders – attracting and

retaining best talent

• Establish thought leadership through supporting pioneering initiatives towards progressive social change

• Explore new models for future business

• Enhance communication and have strategic partnerships for greater impact and leverage

The strategic objectives are designed to establish best practices in the field of CSR and to charter a new path for others to follow. Cairn India intends to:

The external objectives are aimed towards positive engagement with the external stakeholders, to gain their support for the CSR activities and develop a vision based on reasonable expectations and needs of the external stakeholders. These external objectives are aimed towards:

The internal objectives are directed towards seeking active participation of internal stakeholders, namely employees, investors and supply chain members. The internal objectives are aimed towards:

Our ObjectivesAt Cairn we believe in sustainable

development, which we interpret as

growing our business in a socially and

environmentally responsible way while

meeting the legitimate interests of our

stakeholders. We also believe in taking

an active role in empowering local

communities to achieve their ambitions.

To achieve the collective vision of Cairn,

its stakeholders and communities, we have

set forward some objectives we would like to

achieve as a responsible corporate citizen.

These are:

• Proactive management of stakeholder

expectations to obtain and maintain a

‘Social License to Operate’

• Partnering with the community for

socio-economic development

• Achieving a positive perception of

Cairn in areas of operation

• Demonstrating leadership in corporate

citizenship

These objectives are further segregated

into strategic objective, external and

internal, primarily for the purpose of

greater focus and maintaining a balance

between the sub-goals of the various

stakeholders and Cairn.

Cairn India received the TERI Corporate Award for Social Responsibility 2008 and the Golden Peacock Award for Corporate Social Responsibility 2011 in recognition of its community engagement initiatives. These awards recognise corporate leadership in environmental management and good corporate citizenship across the country.

Str

Ate

gIC

exte

rn

Al

Inte

rn

Al

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Fourthematic

areas

Education Health

Infrastructure Economic Development

PrImAryLand contributorsLocal community

SeCOnDAryPanchayat

District AdministrationLocal Industries

Regulatory AuthoritiesPolitical Representatives

Academic Institutions

tertIAryLocal NGOs

Regional NGOsMedia

STAKEHOLDERS

We believe that building lasting

relationships needs transparency and

involvement of all stakeholders which leads

to mutual trust, social license to operate and

fostering partnership with our communities,

joint venture partners, governments and

regulators. Seeking win-win relationships

with all our stakeholders is one of our

guiding principles and has always helped

us to understand each other’s needs and to

work together for everyone’s growth.

We regularly interact with district

administration officials, as well as the

communities and key influencers to plan

and implement innovative and acceptable

development models which have proved to

be a torch bearer for other similar activities in

the area.

Alliances - It is increasingly difficult for any

organisation to develop all the capabilities

needed to foster new innovations. We at

Cairn believe that requisite knowledge can

often only be developed in conjunction with

those possessing specific understanding

of the desired objectives which includes

private sector companies, as well as non-

profit research institutes, universities, and

government bodies. Cairn CSR forges

different levels of partnership looking at

the local needs and delivering high end

programmes aimed at improving the social

milieu. The list below is a showcase of some

of our partnerships and programmes taken

up so far.


Gov

ernm

ent A

nd Regulators NGOS Business partners Employees Investors Contractors and suppliers Communitie

s

Aca

dem

ic In

stitu

tions

• Effective communication of strategy and performance• Good corporate governance and risk/

opportunity management• Climate change strategy

• Award of exploration permits• Granting Operational Permits• Compliance monitoring

• Clear policies and principles • Partnerships for progress

• Partnerships for conservation of the environment

• Community development projects

1

2 3 4 5 6 7

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• Responsible investment • Legal compliance • Fair returns

• Meetings with investment analysts • IFC audit and annual monitoring

report to IFC • Participation in surveys for

investment analysts • Regular reporting

• To be treated fairly and honestly • Long term relationships • Opportunities for growth

• Commercial relationships • Meetings • Training and capacity building

StAKeHOlDerS

1

2

5

• Preparingbusinessleaders of tomorrow• Research• Partnership

• Developingandteaching Cairn India Case studies• Research on impact in the creation of

sustainable social, environmental and economic value.

• Partnership for implementation of the projects

Key interest and expectations

Engagement

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• Good neighbours • Employment opportunities• Community development and welfare

• Public consultations • Grievance mitigation• Community investment

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6

• Adherence to global standards

• Direct interaction for feedback and performance reporting

• Commercial relationship

• Competitive pay • Challenging, high quality work • Opportunity for development

• Continuing professional development for all employees

• Consultation on organisational initiatives

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4

Partners

International Finance Corporation

(IFC)

HelpAge India

room to read India trust

reuters

multi Commodity exchange (mCx)

Flagship programmes

Cairn-IFC Linkage Programme, which was for 3 years, is now being continued by Cairn

independently. The programme has three components

i) Livelihoods promotion through the establishment of an Enterprise Centre,

ii) Child and Maternal Health Initiatives

iii) Dairy Development

Two Mobile health Vans are operational in Barmer District covering more than 60 villages.

Health awareness campaigns organised in six districts of Gujarat along the pipeline route.

Set up 40 libraries in Barmer District and 25 libraries in rural areas of Gujarat.

Connecting more than 10,000 farmers through mobile based SMS service for providing

agri inputs and advisory.

Gramin Suvidha Kendra (GSK) an innovative partnership model with Department of Post,

Government of India leveraging rural Post offices to provide agri inputs to Farmers

across pipeline.

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Cairn India Limited Corporate Brouchure

Business

Transcript of Cairn India Limited Corporate Brouchure